Dispute Resolution in Tax Matters: An India-UK Comparative Perspective

Over the years, an adversarial system in tax dispute resolution has hindered India's growth owing to the procedural complexities, inordinate delays and expenses involved. Having faced similar issues in the past, the HMRC in the UK has put in place several mechanisms by which the confrontational approach to tax disputes has been rationalized through efficient case management, avoidance of procedural formalities and increasing opportunities for settlements and alternative dispute resolution. In light of the above, this article analyzes the tax dispute resolution mechanisms in both countries and looks at how India can learn from the UK so as to aim towards more efficient dispute resolution systems involving reconciliatory, consensual and informal processes.